HKDUSD rises to highest close since January 5, 2016
Hong Kong Dollar/US Dollar (HKDUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, HKDUSD ended Thursday at 0.128999 gaining 5 pips (0.0%). Today's close at 0.128999 marks the highest recorded closing price since January 5, 2016. Trading up to 50 pips lower after the open, HKD/USD managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HKDUSD as at Mar 26, 2020):
Thursday's trading range has been 62 pips (0.05%), that's far below the last trading month's daily average range of 160 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HKDUSD. Prices continued to consolidate within a tight trading range between 0.128919 and 0.129006 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
The market ran into sellers again today around 0.129006 for the third trading day in a row after having found sellers at 0.129002 in the previous session and at 0.128992 two days ago. The last time this happened on March 19th, HKDUSD actually gained 0.05% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for HKD/USD. Out of 7 times, HKDUSD closed higher 57.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 71.43% with an average market move of 0.05%.